Borders Still Beckon To Us

PEOPLE, PLACES AND THINGS - CHATTER FROM THE MARKETPLACE

May 11, 2008

The dollar may be slumping and Americans' disposable income may be shrinking, but just try keeping them home.

Travel organization AAA and Global Insight, a forecasting company, predict that 25.1 million Americans will be crossing borders for leisure travel this summer, up 2.6 percent from last year. And they're expected to spend more than ever: $30.7 billion in June, July and August, up 5.7 percent from last year.

Travelers "are reallocating their budgets," said Ken McGill, executive managing director of Global Insight. "Leisure travel has become not only a necessity to many American travelers, it's become almost a divine right."

Vacationers will cut shopping and entertainment out of their travel budgets, and will cut household expenses before they nix travel plans, McGill said.

The basis for the forecast includes data on the U.S. economy, domestic spending and foreign exchange rates.